Stonex Financia Upgrades Toll Brothers (NYSE:TOL) to Strong-Buy

Key Points

• Stonex Financia upgraded Toll Brothers to “strong buy,” adding to a generally bullish analyst outlook. The stock has a consensus “Moderate Buy” rating and an average price target of $166.67.
• Toll Brothers shares traded near $133.49, below their 50-day and 200-day moving averages. The company recently beat quarterly EPS and revenue estimates, but revenue declined 9.7% year over year and EPS fell from the prior-year period.
• The luxury homebuilder is expanding its future sales pipeline through new communities and development phases in markets including North Carolina, South Carolina, Florida, Tennessee and Washington, while mortgage affordability and housing demand remain key risks.

Toll Brothers (NYSE:TOL - Get Free Report) was upgraded by stock analysts at Stonex Financia to a "strong-buy" rating in a research note issued on Thursday, Zacks reports.

Other equities research analysts also recently issued reports about the company. Morgan Stanley started coverage on Toll Brothers in a research note on Thursday, October 1st. They set an "overweight" rating and a $159.00 price target for the company. Royal Bank Of Canada cut their price objective on shares of Toll Brothers from $158.00 to $148.00 and set an "outperform" rating for the company in a research report on Thursday. Barclays reduced their price objective on Toll Brothers from $122.00 to $118.00 and set an "underweight" rating for the company in a research note on Tuesday, October 6th. Weiss Ratings upgraded Toll Brothers from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Tuesday, September 29th. Finally, Melius Research began coverage on Toll Brothers in a report on Tuesday, October 6th. They issued a "buy" rating and a $179.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Toll Brothers currently has a consensus rating of "Moderate Buy" and a consensus price target of $166.67.

Toll Brothers Stock Performance

Shares of NYSE:TOL traded down $0.45 during midday trading on Thursday, reaching $133.49. 1,301,677 shares of the company's stock traded hands, compared to its average volume of 1,204,210. Toll Brothers has a one year low of $123.14 and a one year high of $168.36. The stock has a 50 day moving average of $139.43 and a 200 day moving average of $142.99. The company has a market cap of $12.30 billion, a price-to-earnings ratio of 10.71, a P/E/G ratio of 1.08 and a beta of 1.31. The company has a debt-to-equity ratio of 0.32, a quick ratio of 0.55 and a current ratio of 4.53.

Toll Brothers (NYSE:TOL - Get Free Report) last posted its earnings results on Tuesday, August 18th. The construction company reported $2.97 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.93 by $0.04. Toll Brothers had a net margin of 11.14% and a return on equity of 14.21%. The business had revenue of $2.66 billion for the quarter, compared to analysts' expectations of $2.62 billion. During the same quarter in the prior year, the business earned $3.73 EPS. The business's revenue for the quarter was down 9.7% compared to the same quarter last year. As a group, equities research analysts anticipate that Toll Brothers will post 12.80 EPS for the current fiscal year.

Insider Buying and Selling

In other Toll Brothers news, Director Stephen East sold 800 shares of Toll Brothers stock in a transaction that occurred on Thursday, September 24th. The shares were sold at an average price of $135.99, for a total transaction of $108,792.00. Following the transaction, the director owned 12,642 shares of the company's stock, valued at $1,719,185.58. The trade was a 5.95% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Insiders own 1.37% of the company's stock.

Institutional Trading of Toll Brothers

Institutional investors and hedge funds have recently modified their holdings of the company. Continuum Advisory LLC bought a new position in Toll Brothers in the 2nd quarter worth $28,000. Hilton Head Capital Partners LLC increased its stake in Toll Brothers by 65.5% in the 1st quarter. Hilton Head Capital Partners LLC now owns 187 shares of the construction company's stock worth $26,000 after buying an additional 74 shares in the last quarter. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in Toll Brothers during the second quarter valued at about $35,000. Compass Financial Management LLC bought a new stake in Toll Brothers during the second quarter valued at about $51,000. Finally, Caitlin John LLC bought a new stake in Toll Brothers during the second quarter valued at about $53,000. 91.76% of the stock is currently owned by institutional investors.

Key Headlines Impacting Toll Brothers

Here are the key news stories impacting Toll Brothers this week:

• Positive Sentiment: Toll Brothers announced several new luxury-home opportunities, including a new phase at Griffith Lakes in Charlotte, North Carolina; the Toll Brothers at Everly community in Spartanburg, South Carolina; and the upcoming lakefront Cypress Reserve community in Clermont, Florida. These openings expand the company’s selling pipeline and could support future orders and revenue. Griffith Lakes announcement Everly announcement Cypress Reserve announcement
• Positive Sentiment: The company also announced Magnolia Green, a new Nashville-area community in Franklin, Tennessee, with sales expected to begin after construction starts in early 2027. The LakePointe master-planned community in Covington, Washington, developed with Brookfield Residential, further broadens TOL’s geographic pipeline. Magnolia Green announcement LakePointe announcement
• Neutral Sentiment: Citigroup and RBC reduced their price targets to $168 and $148, respectively, but retained bullish ratings of “buy” and “outperform.” The cuts signal more cautious expectations, while the ratings indicate analysts still see upside from current levels.
• Negative Sentiment: Investor attention remains focused on earnings: the latest quarter’s revenue and EPS exceeded estimates, but revenue fell 9.7% year over year and EPS declined from the prior-year period. Articles also note that the stock’s valuation case depends on earnings holding up, leaving demand, margins, and mortgage affordability as key risks.

About Toll Brothers

Toll Brothers, Inc is a U.S. luxury homebuilder that designs, constructs, markets and sells single-family homes, townhomes and condominiums. The company serves move-up, luxury, active-adult and urban buyers, offering homes in a range of architectural styles and price points.

Founded in 1967 by brothers Robert I. Toll and Bruce E. Toll, the company develops residential communities on land it acquires and prepares for construction. Its operations also include related services such as mortgage financing, title and settlement services, and property development through its Toll Brothers Apartment Living and Toll Brothers City Living businesses.

Toll Brothers operates across numerous metropolitan and suburban markets in the United States, with a presence in regions including the Northeast, Mid-Atlantic, Southeast, Texas, the Midwest, Arizona and the West Coast.

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